To answer these questions, we need to understand the practice law of IPO registration system and the internal logic of multi-level capital market.
On May 27, the financial committee issued 11 articles of financial reform, one of which is the introduction of the guidance on the listing of the transfer board.
On June 3, the CSRC issued the guiding opinions on the listing of Listed Companies in the national small and medium-sized enterprise stock transfer system, and made it clear that during the pilot period, the qualified selected companies on the new third board can apply for either the transfer to the science and technology innovation board or the transfer to the growth enterprise board. The condition is to be listed continuously for more than one year in the selected layer, and at the same time to meet the listing conditions of the transferred plate. The exchange shall review and make a decision on the listing of the transferred board in accordance with the listing rules.
On the same day, the first listing committee of the new third board launched the listing review of the selected layer. The first listing committee meeting will be held on June 10. Up to now, the stock transfer company has accepted the listing application of selected layer of 47 enterprises.
At the end of last year, the threshold for investment in the new third board was lowered, and the criteria for investors access to assets in the selective layer, the innovative layer and the basic layer were adjusted to 1 million yuan, 1.5 million yuan and 2 million yuan, respectively. The 5 million investment threshold has completely become the past.
According to the latest data, there are more than one million qualified investors in the market. A number of public funds have applied to the CSRC for the establishment of new third board fund products, among which six fund companies including Huaxia Fund, Nanfang fund, huitianfu fund, Fuguo fund, Wanjia fund and China Merchants Fund have been approved in the first batch.
For the enterprises that want to log in to the capital market, they can go public directly through the registration system IPO. Why do they have to go to the new three board bypass?
In this regard, some authorities involved in policy-making explained to the author: if we understand the registration system as that anyone who meets the conditions can be listed, and when they want to be listed, then the attraction of the new three board is not very big. However, the registration system reform is gradual, and the actual situation is far from the above goals.
Another person in charge of the new three board business of securities companies also has the same view: under the registration system, there is still a rhythmic control, and the queuing situation will still exist. A lower threshold does not mean the door seam is open.
The insiders who communicate with the author believe that the new three board is still of unique significance in the short and long term.
First of all, in the short term, the expectation of listing on the conversion board is clear. The industry expects that after the implementation of the registration system, there will be no mass listing of enterprises, because the current secondary market structure does not support it. In addition, there will be some inconsistencies between paper and Practice for a long time. As a result, the phenomenon of new stock queuing may still exist in a certain period of time. And the new three board select layer enterprises, after meeting the conditions, can directly transfer the board, the expectation is very clear.
However, the so-called advantages mentioned above are phased. With the registration system gradually approaching the ideal state, the listing expectations of each sector will be more clear.
Third, different from the main board, growth enterprise board and science and technology innovation board, the new three board has internal stratification mechanism and upgrading mechanism to exchange market. And the improvement of each level means an opportunity to improve the valuation, and investors with value discovery ability can obtain excess return.
Fourth, the new third board can solve the problem of withdrawal of investment in the primary market. Generally speaking, it will take five, seven or even ten years for venture capital to get an opportunity of valuation promotion and exit. The new three board allows early investors to have exit opportunities before IPO, which in turn can encourage venture capital to invest early and small more safely.
Zeng Peng, director of integrated investment and research of Boshi fund equity investment headquarters, said in an interview with first finance and economics that the new three board selection layer reform introduced a competitive trading mechanism, improved information disclosure and financing functions, and fully matched the regulatory requirements of listed companies to the main board. Its significance is to provide financing channels and price discovery functions for earlier companies, which is equivalent to further advance the primary market to the secondary market on the basis of the science and technology innovation board and the growth enterprise board, which will help the best start-ups to obtain the support of financing channels and the secondary market more quickly, and accelerate the development of Chinas science and technology industry, especially the early companies with advanced technology strength Exhibition.
In his opinion, after listing for one year, the new three board select layer can apply for board conversion, greatly shortening the previous listing cycle, which is equivalent to providing a green channel for listing. The new three board selection layer refers to the exchange market supervision and information disclosure mechanism. For regulators, this provides a stable and high-quality reservoir for the source of Listed Companies in higher-level sectors; for companies, it helps to achieve continuous and stable development in different stages with the help of capital market forces; for investors, it helps to achieve faster and more seamless connection through multi-level markets Cash in capital gains.
Different from the crazy imagination at the beginning of 2015, the new three board in 2020 is more rational. From the perspective of market performance, the three board market making index is slowly climbing from around 700 points at the end of 2019, which has reached 1100 points. Since the decision of the State Council on issues related to the national equities exchange system for small and medium-sized enterprises (GF  No. 49) has been issued, all major reform measures of the new third board have been implemented. After the board transfer mechanism takes effect, the new three board infrastructure is basically completed. However, there is no end to reform. The author learned from the authoritative people that the next step of the new three board will focus on the improvement of the transaction system, the issuance system, and the merger and reorganization system of the selected layer. In addition, the new third board will be connected with the fourth board in the future. (first financial reporter Android also contributed to this article) source: first financial daily editor in charge: Guo Chenqi_ NBJ9931
Different from the crazy imagination at the beginning of 2015, the new three board in 2020 is more rational. From the perspective of market performance, the three board market making index is slowly climbing from around 700 points at the end of 2019, which has reached 1100 points.
However, there is no end to reform. The author learned from the authoritative people that the next step of the new three board will focus on the improvement of the transaction system, the issuance system, and the merger and reorganization system of the selected layer. In addition, the new third board will be connected with the fourth board in the future.
(first financial reporter Android also contributed to this article)